The Magician's Elephant by Kate DiCamillo
Peter Augusts Duchene, an orphan, goes to a fortuneteller, who tells him that he has a sister who is alive somewhere. When he asks the fortuneteller how to find his sister, she tells him to follow the elephant to her. The only problem is, there is no elephants in the city of Baltese! That is, until a magician by mistake conjures up an elephant out of nowhere, and cannot send her back home.
This book really tugs at your heartstrings. The loneliness of the elephant, who is magically taken from her family, along with the loneliness of Peter, who has no known family, really makes the reader hope for a happy ending. In this, DiCamillo does not fail.